Govt to revise growth prospects down

The Government will announce later that the economic recovery is much slower than planned, but that a harsher budget for next year is not needed.

Ministers will revise down growth prospects for next year.

Yesterday, the Cabinet approved the medium-term fiscal statement which will be published later today.

This will outline the current projections for economic growth and the state of the Irish economy.

Up to now the Coalition had been projecting growth next year of 2.2%, but they are now expected to cut this to around 1.5%.

This is still slightly better than the IMF's forecast which was revised down to 1.1% last week.

The lower growth prospect is not expected to lead to a harsher budget next month.

That is because the Coalition is expected to beat the deficit targets from the Troika for this year, and therefore to get a headstart on the reductions for 2013.

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